2012 Study of Internet Behaviours of Young South Africans Shows that the Majority of 18 to 30-year-old Respondents Shop Online with 63% Purchasing up to 24% of their Goods on Retail Websites

LinkedInGoogle+
Share:

JOHANNESBURG, South Africa– December 12, 2012 – As South African's spend more in the lead up to the festive season, the 2012 Cisco Connected World Technology Report (CCWTR) has revealed that over two thirds of the surveyed South African respondents are relying on internet retail sites to do their shopping.

The study also shows that:

  • 59% will share their email address to get discounts and sales notices.
  • 65% rely on customer reviews for online shopping.
  • But 82% do not trust most internet sites to keep data secure.

The results for South Africa are based on a survey commissioned by Cisco of 1800 Generation Y (Gen Y) university students and young professionals, aged 18 to 30, across 18 countries. The report examines how this generation uses the Internet to connect with the world around them, and reveals their behaviours, attitudes, issues, and concerns about the creation, access, management, and privacy of the enormous amounts of data being generated daily by smartphones, sensors, video cameras, monitors, and other connected devices.

Highlights/Key Facts:

  • Privacy versus coupons and discounts

    Nearly 60% of South African respondents are willing to share their email address with stores and online sites in order to receive notices about discounts and sales. However, a very small percentage of these consumers would be willing to share their phone number, home address, or similar information.

  • The importance of online reviews

    65% report using online reviews at least occasionally when making purchasing decisions. However of all the consumers surveyed worldwide, South Africans were found to be least likely to use online reviews prior to making purchases, as more than one third indicated they rarely or never do so.

  • Tracking and analysing consumer activity

    The growing interest and reliance on internet retail sites means that there is an increase in online data, presenting greater opportunities for marketing and sales campaigns that are based on analysing, correlating, and cross-referencing consumer data. Big Data analysis is being adopted at a rapid rate by retailers, both for retail stores and online sites. Almost half of the South African respondents are conscious that many stores are likely to track and analyse customer activity and shopping habits, but most express their disapproval of the idea. A quarter of the respondents was unaware of such monitoring and also expressed their distaste for it.

  • Lack of Consumer Trust

    Although consumers love the convenience of online shopping, over four out of five Gen Y respondents, globally, stated that they do not trust most Internet sites to keep their private data safe.

Executive Quote:

  • Alpheus Mangale, Managing Director for Cisco in South Africa:

    “Online shopping has become increasingly popular in South Africa, however the country is only now catching up with the rest of the world and the findings of this research demonstrate this. This shopping trend is set to grow from strength to strength given the increased convenience and flexibility it offers consumers. In order for South Africans retailers to be able to benefit even more, Cisco believes that the right network and technology infrastructure needs to be in place in order for them to fully take advantage of online shopping.”

Note to Editors About the Study:

The third in an annual series, the 2012 Cisco Connected World Technology Report, was commissioned by Cisco and conducted by InsightExpress, an independent market research firm based in the United States. The global study consists of two surveys: one focused on college students and workers aged 18 to 30, and the second focused on IT professionals. Each survey includes 100 respondents from each of 18 countries, resulting in a pool of 3,600 respondents. The 18 countries include: The United States, Canada, Mexico, Brazil, Argentina, United Kingdom, France, Germany, Netherlands, Russia, Poland, Turkey, South Africa, India, China, Japan, South Korea, and Australia.

About Cisco Systems: Cisco (NASDAQ: CSCO) is the worldwide leader in networking that transforms how people connect, communicate and collaborate. Information about Cisco can be found at http://www.cisco.com. For ongoing news, please go to http://newsroom.cisco.com.

Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco's trademarks can be found at www.cisco.com/go/trademarks. Third-party trademarks mentioned are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company.